Flow International 10-Q 2012 Q3 Quarterly report

Exhibit 99.1

DEBT COVENANT COMPLIANCE

AS OF JANUARY 31, 2012

Adjusted EBITDA:

(in 000s)	LTM (i)		Q4 FY11			Q1 FY12		Q2 FY12		Q3 FY12
Net Income	$	7,194	$	388		$	711	$	2,779	$	3,316
Add Back:
Depreciation and Amortization	6,319		1,596			1,572		1,579		1,572
Income Tax Provision (Benefit)	4,248		(31		)	100		2,138		2,041
Interest Charges	1,445		508			311		309		317
Non-Cash Charges (ii)	2,392		300			666		558		868
Adjusted EBITDA	$	21,598	$	2,761		$	3,360	$	7,363	$	8,114
I. Consolidated Leverage Ratio
A. Total Long-Term Obligations and Notes Payable (iii)	$	2,888
B. Adjusted EBITDA	$	21,598
C. Consolidated Leverage Ratio (Line I.A / Line I.B)	0.13
Maximum Permitted	2.75x to 1
II. Consolidated Fixed Charge Coverage Ratio (i)
A. Adjusted EBITDA
1. Consolidated Net Income	$	7,194
2. Consolidated Interest Charges	$	1,445
3. Provision for income taxes	$	4,248
4. Depreciation expenses	$	5,811
5. Amortization expenses	$	508
6. Non-recurring non-cash reductions of Consolidated Net Loss	$	2,392
7. Adjusted EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6)	$	21,598
B. Cash payments for taxes	$	1,062
C. Maintenance Capital Expenditures	$	2,000
D. Consolidated Interest Charges (except non-cash interest)	$	515
E. Current portion of other long term debt (iv)	$	26
F. Consolidated Fixed Charge Coverage Ratio ((Line II.A.7 - Line II.B - Line II.C) / (Line II.D + Line II.E)	34.3
Minimum required	1.75x to 1

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Notes:

(i) Last Twelve Months (Most Recent Four Fiscal Quarters)

(ii) Allowable add backs pursuant to Credit Facility Agreement

(iii) Includes letters of credit of $2.8 million and excludes subordinated debt

(iv) Represents current portion of other long-term debt as of January 31, 2012